Revenue Performance - For the three months ended January 31, 2024, consolidated revenue decreased by $30.7 million, or 6%, compared to the prior year, with adjusted revenue increasing by 1% on a constant currency basis [197]. - Consolidated Revenue for the nine months ended January 31, 2024 decreased by $89.2 million, or 6%, compared to the prior year [251]. - Adjusted Revenue for the nine months ended January 31, 2024 was $1,176.3 million, a decrease of 3% compared to the prior year [252]. - Research Publishing revenue for the three months ended January 31, 2024, was $216.6 million, a 1% increase from $213.7 million in the prior year [237]. - Research revenue for the three months ended January 31, 2024 increased by $2.6 million, or 1%, compared to the prior year on a reported basis [238]. - Total Learning Revenue increased by $3.1 million, or 2%, compared to the prior year, driven by growth in digital courseware and content [243]. - Total Learning Revenue for the nine months ended January 31, 2024 increased by $2.1 million, or 1%, compared to the prior year [293]. - Research Publishing revenue declined by 4% to $659.3 million for the nine months ended January 31, 2024 [289]. - Research revenue for the nine months ended January 31, 2024 decreased by $28.2 million, or 4%, compared to the prior year, primarily due to the Hindawi publishing disruption [290]. Operating Performance - Operating loss for the three months ended January 31, 2024, was $46.4 million, an improvement of $20.6 million compared to the prior year [197]. - Adjusted EBITDA for the three months ended January 31, 2024, was $91.5 million, an increase of 1% compared to the prior year [197]. - Adjusted EBITDA for the Research segment was $79.1 million for the three months ended January 31, 2024, a decrease of 1% from $80.3 million in the prior year [237]. - Adjusted EBITDA for Learning increased by 15% on a constant currency basis, attributed to revenue performance and product mix [244]. - Adjusted Operating Income (OI) decreased by 14% year-over-year, primarily due to lower revenues, partially offset by reduced costs [269]. - Adjusted EBITDA decreased by 7% year-over-year, mainly attributed to the decline in Adjusted OI [270]. - Adjusted EBITDA on a constant currency basis decreased by 13% compared to the prior year, with a decrease of $31.9 million attributed to Hindawi [291]. Financial Position - As of January 31, 2024, the company had cash and cash equivalents of $108.8 million, with approximately $107.1 million, or 98%, located outside the US [301]. - The company had approximately $906.8 million of debt outstanding as of January 31, 2024, with $587.4 million of unused borrowing capacity [303]. - Net cash provided by operating activities for the nine months ended January 31, 2024 was $24.4 million, a decrease of $29.3 million compared to the prior year [308]. - Free cash flow less product development spending for the nine months ended January 31, 2024 was $(45.2) million, compared to $(21.7) million in the prior year [307]. - Net cash provided by financing activities was $55.4 million for the nine months ended January 31, 2024, a slight increase from $55.3 million in the prior year [314]. Losses and Impairments - The company recorded a net loss of $113.9 million for the three months ended January 31, 2024, compared to a net loss of $71.5 million in the same period of 2023 [219]. - The company incurred pretax losses on sale of businesses and impairment charges related to assets held-for-sale amounting to $52.4 million for the three months ended January 31, 2024 [223]. - The company recorded a pretax loss on sale of businesses and impairment charges of $179.7 million for the nine months ended January 31, 2024 [277]. - Non-GAAP Adjusted EPS decreased by 30% to $1.59 for the nine months ended January 31, 2024, from $2.29 in the prior year [287]. Tax and Interest - The US GAAP effective tax rate for the three months ended January 31, 2024, was (1.4)%, compared to 7.7% for the same period in 2023 [232]. - The US GAAP effective tax rate for the nine months ended January 31, 2024, was 6.4%, up from 2.7% in the prior year [283]. - Interest expense increased to $37.6 million for the nine months ended January 31, 2024, compared to $27.2 million in the prior year [274]. Business Sales and Restructuring - The sale of University Services was completed on January 1, 2024, for a total consideration of $122.6 million, including a $92.9 million promissory note and $17.8 million in contingent consideration [194]. - The company expects to complete the sale of Wiley Edge and CrossKnowledge by the first quarter of fiscal year 2025, with total consideration for Wiley Edge up to $62.2 million [195]. - The company anticipates annualized cost savings of approximately $65 million from its Global Restructuring Program, with $35 million expected to be realized in the current fiscal year [209]. Shareholder Returns - Quarterly dividend increased to $1.40 per share annualized compared to $1.39 per share in the previous year [315]. - Shares repurchased for Class A increased to 870,000 shares in the nine months ended January 31, 2024, from 539,000 shares in the prior year [315]. Miscellaneous - Foreign currency translation gains of approximately $25.1 million were recorded during the three months ended January 31, 2024, primarily due to fluctuations in the US dollar against the British pound sterling [321]. - Subscription agents account for approximately 15% of total annual consolidated revenue, with no single group exceeding 10% [327]. - The top 10 book customers account for approximately 12% of total consolidated revenue and 36% of accounts receivable as of January 31, 2024 [328]. - Increase in inventories, net was $7.718 million as of January 31, 2024, compared to $6.923 million in April 2023 [326]. - Print book sales return reserve net liability balance increased to $(14.971) million as of January 31, 2024, from $(14.419) million in April 2023 [326].
John Wiley & Sons(WLYB) - 2024 Q3 - Quarterly Report